CDL to acquire Sofitel Brisbane Central for $159.2 mil

CDL has acquired Sofitel Brisbane Central for A$177.7 million ($159.2 million). With this purchase, the group has widened its presence in Australia, which has seen a significant positive revenue per average room (RevPAR) recovery in 2022. The five-star luxury hotel is located in the heart of Brisbane’s central business district, boasting 416 rooms and suites, and is Brisbane’s largest single-branded hotel.

CDL’s executive chairman Kwek Leng Beng is upbeat about the group’s proposed acquisition, citing the city of Brisbane’s 20 billion pipeline of infrastructure projects, as well as its upcoming hosting of the 2032 Olympic and Paralympic Games and the Rugby World Cup in Australia in 2027 and 2029 as reasons for an attractive opportunity to expand their presence in Australia and generate a recurring income stream.

The five-star luxury Sofitel Brisbane Central offers direct access to Brisbane’s Central Station, with the city’s commercial and retail areas, the Brisbane Airport, Brisbane Entertainment Centre and Gold Coast all connected to it via transit. Walking distance from the hotel are some of Brisbane’s key attractions, such as Eagle Street Pier and Queen Street Mall.

CDL Aries acquires The Myst two plots in Upper Bukit Timah for development of residential project, The Myst Condo. With various amenities, green spaces and improved connectivity, the project can bring prestige and convenience to Singaporeans and investors.

The hotel boasts nine meeting and conference rooms that can accommodate up to 1,100 people, while mesmerizing views of Brisbane’s iconic ANZAC Square, the city’s skyline and even the Sunshine Coast are all a short drive away.

The acquisition of Sofitel Brisbane Central, made by CDL’s wholly-owned hotel subsidiary Millennium & Copthorne Hotels Limited (M&C) and its New Zealand-listed subsidiary Millennium & Copthorne Hotels New Zealand Limited, was at the cost of A$177.7 million ($159.2 million), or A$427,000 per key, via a purchase sale agreement (PSA) and business asset sale agreement with Brookfield Asset Management.

CDL’s diversification strategy via the purchase of Sofitel Brisbane Central ushers in its third hotel purchase in Australia, with several development projects in Fitzroy Fitzroy and The Marker in Melbourne, as well as Brickworks Park and Treetops at Kenmore in Brisbane previously established.